Bartlesville, OK · 918.336.8708

Tax Structure

The modern market is characterized by mobile capital and labor. Therefore, companies will locate where they have the greatest competitive advantage. States with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth. Although the market is now global, the Department of Labor reports that most mass job relocations are from one U.S. state to another rather than to an overseas location.

According to the Tax Foundation, in 2015 the state of Oklahoma is ranked 32nd overall among the 50 states in terms of its State Business Tax Climate Index, with a ranking of 1 meaning most favorable business climate. Oklahoma ranks high for its State Corporate Tax (7) and its Unemployment Insurance Tax (1). Individual Income Tax and Property Tax rankings place Oklahoma mid-way among all 50 states. However, it ranks nearer the bottom for its State Sales Tax, with a ranking of 38. While Oklahoma ranks near the bottom for its State Sales Tax, it’s a different story when both State and Local Sales Taxes are figured in. In that case, Oklahoma ranks #4 for combined State & Local Sales Tax.

Taxes
Type Base or Measure Rate Agency
Corp. Income Tax Net Income 6% Ok. Tax Commission
Franchise Tax Capital use to produce state income  $1.25 per $1,000' max. is $20,000.  Only corporations with capital of $201,000 or more required to pay. Ok. Tax Commission
Sales & Use Tax Receipts from sales/ use of taxable items 8.5% (state, county & city included) Ok. Tax Commission
Unemployment Insurance Wages to $17,000 0 - 5.5%, 2.2% for new companies Okla Employment Security Commission
Workers' Compensation Payroll and occupation Variable - based on each job code Workers' Compensation Court
Personal Income Taxable income 0.5 - 5.25% Ok. Tax Commission
Local Property Tax Valuation of Property Approximately 1% of assessed value County Assessor
Source: Oklahoma Business Incentives & Tax Information Guide